Trump says he has paused 50% tariffs against Canada for 3-day period

"I have paused the 50% Tariffs against Canada, that were scheduled to kick in tomorrow morning for a three day period, based on the fact that Canada and the U.S.A., subject to the finalization of documents, have a deal!" he said on his Truth Social platform.

Trump also suggested that the agreement could revive the Keystone XL pipeline, a major cross-border energy project that was canceled during the previous Biden administration.

“The great Keystone XL Pipeline, long ago killed by Sleepy Joe Biden, may be awoken from the grave!” he said.

The announcement followed a phone call Tuesday between Trump and Canadian Prime Minister Mark Carney, who was seeking to reach an agreement and avert the tariffs on roughly C$30 billion ($22 billion) worth of Canadian goods.

For his part, Carney said the US has agreed to postpone implementation of a planned 50% tariff on a range of Canadian goods under Section 338 of the US Tariff Act of 1930 until the end of the day on Aug. 21.

Canada and the US have held "intensive discussions" in recent weeks aimed at resolving trade disputes and providing greater certainty for Canadian businesses, workers, farmers and families, he added.

"Substantial progress has been made, although there is important work still to be done," Carney said in a statement.

Canada would remain focused on strengthening its domestic economy while the negotiations continue, he added.